For the first time in several years, the architectural industry in Greater Boston has seen an overall decrease in profit, reflecting a broader trend happening across all industries, according to a recent survey.

According to this year’s architectural survey from CBIZ Tofias and Mayer Hoffman McCann P.C., the decline began for most firms in late 2008.

Among the trends, the study found the slowdown in commercial building is a symptom of broader industry trends and slowing demand for new and existing architecture projects. The overhead rate per direct hour increased by approximately 10 percent, and the average profit level and the billable hours of employees both decreased, according to the survey.

"For three years architectural firms saw record profits, but a major shift occurred at the end of 2008. At that time, the industry suffered a decrease in available project work which impacted profitability and required most firms to downsize accordingly," said David Swan, author of the report and leader of the Architecture, Engineering and Consulting (A/E/C) Practice. "We anticipate architectural firms will see a decrease in staff and profit levels throughout 2009, and recommend firms monitor their staffing levels and examine profitability levels in order to prepare for all scenarios."

The survey is based on financial information supplied by CBIZ Tofias and Mayer Hoffman McCann’s architectural clients based in Boston, and is a representative cross-section of Greater Boston architectural firms.

 

Greater Boston Architectural Industry Reports Decline In Profits

by Banker & Tradesman time to read: 1 min
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